Creditors can KMA

[pdqdl]

You pay taxes, right? If not, you might wish to start declaring a little bit more of those cash payments from your customers. No profits (to a banker) means that you either don't know how to make money or you are likely to get seized by the IRS. Either way, the banker won't like it.

Do you have an accountant? Have your accountant draft up the documents I mentioned, walk in to your bank with some equity, and then walk out with a line of credit.

By the way: do NOT ask for a tiny line of credit and put up your house and business. The bank will love it, but you will loose all your ability to borrow against it's value if you sign it all away on a dinky little loan. If you are putting up 100k in property with a provable market value, then don't take less than a 50% line of credit.

Your line of credit should not cost anything except the interest on the money you borrow. Some banks might have an annual fee. You should expect good interest rates and no bills whatsoever if you paid off all the cash advances. Really, it's just like a credit card, only they get to take your property if you default.

 

[swyman]

You pay taxes, right? If not, you might wish to start declaring a little bit more of those cash payments from your customers. No profits (to a banker) means that you either don't know how to make money or you are likely to get seized by the IRS. Either way, the banker won't like it.

Do you have an accountant? Have your accountant draft up the documents I mentioned, walk in to your bank with some equity, and then walk out with a line of credit.

By the way: do NOT ask for a tiny line of credit and put up your house and business. The bank will love it, but you will loose all your ability to borrow against it's value if you sign it all away on a dinky little loan. If you are putting up 100k in property with a provable market value, then don't take less than a 50% line of credit.

Your line of credit should not cost anything except the interest on the money you borrow. Some banks might have an annual fee. You should expect good interest rates and no bills whatsoever if you paid off all the cash advances. Really, it's just like a credit card, only they get to take your property if you default.

Well since I withdrew all my 401k money I knew uncle Sam was going to kick my ars so my accountant let me write off everything I bought which brought me in at a $44k loss. Guess the banker man won't like that but did it to lessen the tax hit and worked out well for.that, maybe the opposite for the line of credit? I won't have the huge write offs this year unless I do manage to get a grinder but should have a profitable year.

 

[pdqdl]

It sounds like your accountant is playing games that might get you in trouble. If you bought a bunch of equipment, you can't just "write it off". There are rules about that, and the IRS doesn't like to have folks writing off 10 year equipment in the first year.

I suspect the accountant is following the all the rules, and just marketing his "tax savings" skills a little bit too aggressively. Is he a CPA? Those guys make too much money to risk their license by bending rules.